INSURANCE CODE
TITLE 2. TEXAS DEPARTMENT OF INSURANCE
SUBTITLE B. DISCIPLINE AND ENFORCEMENT
CHAPTER 101. UNAUTHORIZED INSURANCE
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 101.001. STATE POLICY AND PURPOSE. (a) It is a state
concern that many residents of this state hold insurance policies
issued by persons or insurers who are not authorized to do
insurance business in this state and who are not qualified as
eligible surplus lines insurers under Chapter 981. These
residents face often insurmountable obstacles in asserting legal
rights under the policies in foreign forums under unfamiliar laws
and rules of practice.
(b) It is the policy of this state to protect residents against
acts by a person or insurer who is not authorized to do insurance
business in this state by:
(1) maintaining fair and honest insurance markets;
(2) protecting the premium tax revenues of this state;
(3) protecting authorized persons and insurers, who are subject
to strict regulation, from unfair competition by unauthorized
persons and insurers; and
(4) protecting against evasion of the insurance regulatory laws
of this state.
(c) The purpose of this chapter is to subject certain insurers
and persons to the jurisdiction of:
(1) the commissioner and proceedings before the commissioner;
and
(2) the courts of this state in suits by or on behalf of the
state or an insured or beneficiary under an insurance contract.
(d) It is also a concern that this state not become a safe
harbor for persons or insurers engaged in the unauthorized
business of insurance in this state, regardless of whether the
insureds or other persons affected by the unauthorized business
of insurance are residents of this state.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 671, Sec. 1, eff.
Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1419, Sec. 0, 21, eff.
June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.005, eff.
Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 2B.014, eff. April 1, 2009.
Sec. 101.002. DEFINITIONS. In this chapter:
(1) "Insurer" includes:
(A) a corporation, association, partnership, or individual
engaged as a principal in the business of insurance;
(B) an interinsurance exchange or mutual benefit society; or
(C) an insurance exchange or syndicate.
(2) "Unfair act" means an unfair method of competition or an
unfair or deceptive act or practice as defined under Chapter 541
or a rule adopted under that chapter.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 2B.015, eff. April 1, 2009.
Sec. 101.003. INSURANCE EXCHANGES AND SYNDICATES; RULES. The
commissioner shall adopt rules defining insurance exchanges and
syndicates that are insurers for purposes of Section 101.002.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
Sec. 101.004. UNCONSTITUTIONAL APPLICATION PROHIBITED; NOTICE TO
COMMISSIONER. (a) Subject to Subsection (b), this chapter does
not apply to an insurer or other person to whom, under the
constitution or statutes of the United States or the constitution
of this state, it may not apply.
(b) Before commencing operations, an insurer or other person
claiming an exemption described by Subsection (a) must file with
the commissioner:
(1) notice of the claim; and
(2) documents supporting the claim.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER B. BUSINESS OF INSURANCE; EXCEPTIONS
Sec. 101.051. CONDUCT THAT CONSTITUTES THE BUSINESS OF
INSURANCE. (a) In this section, "medical expense" includes
surgical, chiropractic, physical therapy, speech pathology,
audiology, professional mental health, dental, hospital, or
optometric expenses.
(b) The following acts in this state constitute the business of
insurance in this state:
(1) making or proposing to make, as an insurer, an insurance
contract;
(2) making or proposing to make, as guarantor or surety, a
guaranty or suretyship contract as a vocation and not merely
incidental to another legitimate business or activity of the
guarantor or surety;
(3) taking or receiving an insurance application;
(4) receiving or collecting any consideration for insurance,
including:
(A) a premium;
(B) a commission;
(C) a membership fee;
(D) an assessment; or
(E) dues;
(5) issuing or delivering an insurance contract to:
(A) a resident of this state; or
(B) a person authorized to do business in this state;
(6) directly or indirectly acting as an agent for or otherwise
representing or assisting an insurer or person in:
(A) soliciting, negotiating, procuring, or effectuating
insurance or a renewal of insurance;
(B) disseminating information relating to coverage or rates;
(C) forwarding an insurance application;
(D) delivering an insurance policy or contract;
(E) inspecting a risk;
(F) setting a rate;
(G) investigating or adjusting a claim or loss;
(H) transacting a matter after the effectuation of the contract
that arises out of the contract; or
(I) representing or assisting an insurer or person in any other
manner in the transaction of insurance with respect to a subject
of insurance that is resident, located, or to be performed in
this state;
(7) contracting to provide in this state indemnification or
expense reimbursement for a medical expense by direct payment,
reimbursement, or otherwise to a person domiciled in this state
or for a risk located in this state, whether as an insurer,
agent, administrator, trust, or funding mechanism or by another
method;
(8) doing any kind of insurance business specifically recognized
as constituting insurance business within the meaning of statutes
relating to insurance;
(9) doing or proposing to do any insurance business that is in
substance equivalent to conduct described by Subdivisions (1)-(8)
in a manner designed to evade statutes relating to insurance; or
(10) any other transaction of business in this state by an
insurer.
(c) An act described by Subsection (b) by an unlicensed or
unauthorized person or insurer that occurs in this state and that
affects a person in another state or jurisdiction constitutes the
business of insurance in this state.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 671, Sec. 2, eff.
Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1419, Sec. 22, eff. June
1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.006, eff. Sept.
1, 2001.
Sec. 101.052. ADVERTISING RELATING TO MEDICARE SUPPLEMENT
BENEFIT PLANS. With respect to a Medicare supplement benefit
plan authorized under Chapter 1652, the business of insurance in
this state includes using, creating, publishing, mailing, or
disseminating in this state an advertisement relating to an act
that constitutes the business of insurance under Section 101.051
unless the advertisement is used, created, published, mailed, or
disseminated on behalf of an insurer or person who:
(1) is authorized under this code to engage in the business of
insurance in this state;
(2) has actual knowledge of the content of the advertisement;
(3) has authorized the advertisement to be used, created,
published, mailed, or disseminated on that insurer's or person's
behalf; and
(4) is clearly identified by name in the advertisement as the
sponsor of the advertisement.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 23, eff.
June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.007, eff.
Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 2B.016, eff. April 1, 2009.
Sec. 101.053. APPLICATION OF SUBCHAPTER. (a) Sections 101.051
and 101.052 apply to an act whether performed by mail or
otherwise. Venue for an act performed by mail is at the place
where the matter transmitted by mail is delivered and takes
effect.
(b) Sections 101.051 and 101.052 do not apply to:
(1) the lawful transaction of surplus lines insurance under
Chapter 981;
(2) the lawful transaction of reinsurance by insurers;
(3) a transaction in this state that:
(A) involves a policy that:
(i) is lawfully solicited, written, and delivered outside this
state; and
(ii) covers, at the time the policy is issued, only subjects of
insurance that are not resident, located, or expressly to be
performed in this state; and
(B) takes place after the policy is issued;
(4) a transaction:
(A) that involves an insurance contract independently procured
by the insured from an insurance company not authorized to do
insurance business in this state through negotiations occurring
entirely outside this state;
(B) that is reported; and
(C) on which premium tax is paid in accordance with Chapter 226;
(5) a transaction in this state that:
(A) involves group life, health, or accident insurance, other
than credit insurance, and group annuities in which the master
policy for the group was lawfully issued and delivered in a state
in which the insurer or person was authorized to do insurance
business; and
(B) is authorized by a statute of this state;
(6) an activity in this state by or on the sole behalf of a
nonadmitted captive insurance company that insures solely:
(A) directors' and officers' liability insurance for the
directors and officers of the company's parent and affiliated
companies;
(B) the risks of the company's parent and affiliated companies;
or
(C) both the individuals and entities described by Paragraphs
(A) and (B);
(7) the issuance of a qualified charitable gift annuity under
Chapter 102; or
(8) a lawful transaction by a servicing company of the Texas
workers' compensation employers' rejected risk fund under Section
4.08, Article 5.76-2, as that article existed before its repeal.
(c) Subsection (b)(6) does not exempt an insured or insurer from
the payment of an applicable tax on premium or from another
applicable provision of this code.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 411, Sec. 1, eff.
Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1419, Sec. 24,, eff.
June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.008, eff.
Sept. 1, 2001; Acts 2003, 78th Leg., ch. 209, Sec. 9, eff. Oct.
1, 2003; Acts 2003, 78th Leg., ch. 1274, Sec. 13, eff. April 1,
2005.
Sec. 101.054. EXCEPTION; FULL-TIME SALARIED EMPLOYEE. Section
101.051(b)(6) does not prohibit a full-time salaried employee of
a corporate insured from acting as an insurance manager or buyer
in placing insurance on behalf of:
(1) the employee's employer; or
(2) a parent or affiliated company of the employer.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
Sec. 101.055. EXCEPTION; CERTAIN ENTITIES THAT REIMBURSE MEDICAL
EXPENSES. (a) Section 101.051(b)(7) does not apply to:
(1) a program otherwise authorized by law that is established:
(A) by a political subdivision of this state;
(B) by a state agency; or
(C) under Chapter 791, Government Code; or
(2) a multiple employer welfare arrangement that is fully
insured as defined by 29 U.S.C. Section 1144(b)(6).
(b) Notwithstanding Subsection (a)(2), the commissioner may
apply a law regulating the business of insurance to a multiple
employer welfare arrangement described by that subdivision to the
extent that the law provides:
(1) standards requiring the maintenance of specified levels of
contributions that the plan, or a trust established under the
plan, must meet to be considered able to pay benefits in full
when due; and
(2) provisions to enforce the standards described by Subdivision
(1).
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER C. PROHIBITION; ENFORCEMENT
Sec. 101.101. DEFINITION. In this subchapter, "person" means an
individual or entity that is a person for purposes of Section
541.002.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 2B.017, eff. April 1, 2009.
Sec. 101.102. UNAUTHORIZED INSURANCE PROHIBITED. (a) A person,
including an insurer, may not directly or indirectly do an act
that constitutes the business of insurance under this chapter
except as authorized by statute.
(b) With respect to insurance of a subject that is resident,
located, or to be performed in this state, this section does not
prohibit an act performed outside this state, including the
collection of premiums, by a person, including an insurer,
authorized to do business in this state if the transaction and
insurance contract otherwise comply with statute.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
Sec. 101.103. POWERS OF COMMISSIONER; REMEDIES FOR CERTAIN
CONDUCT. (a) If the commissioner has reason to believe a
person, including an insurer, has violated or is threatening to
violate this chapter or Chapter 226 or a rule adopted under this
chapter or Chapter 226, or that a person, including an insurer,
violating this chapter or Chapter 226 has engaged in or is
threatening to engage in an unfair act, the commissioner may:
(1) issue a cease and desist order under Subchapter D;
(2) seek injunctive relief under Section 101.105;
(3) request the attorney general to recover a civil penalty
under Section 101.105; or
(4) take any combination of those actions.
(b) This section does not limit the department to the remedies
specified in this section. The department and this state may
choose at any time, without regard to prior proceedings under
this section, any available remedy or action to immediately stop
or enjoin a person from engaging in the business of insurance
without statutory authorization.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2003, 78th Leg., ch. 1274, Sec. 14, eff.
April 1, 2005.
Sec. 101.104. REQUEST FOR INFORMATION. If the commissioner has
reason to believe that a person, including an insurer, is
performing an act described by Section 101.051 or 101.052, the
person shall immediately provide to the commissioner, on written
request of the commissioner, information relating to that act.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
Sec. 101.105. CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A person
or entity, including an insurer, that violates this chapter or
Chapter 226 is subject to a civil penalty of not more than
$10,000 for each act of violation and for each day of violation.
(b) The commissioner may request that the attorney general
institute a civil suit in a district court in Travis County for
injunctive relief to restrain a person or entity, including an
insurer, from continuing a violation or threat of violation
described by Section 101.103(a). On application for injunctive
relief and a finding that a person or entity, including an
insurer, is violating or threatening to violate this chapter or
Chapter 226, the district court shall grant the injunctive relief
and issue an injunction without bond.
(c) On request by the commissioner, the attorney general shall
institute and conduct a civil suit in the name of the state for
injunctive relief, to recover a civil penalty, or for both
injunctive relief and a civil penalty, as authorized under this
subchapter.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2003, 78th Leg., ch. 1274, Sec. 15, eff.
April 1, 2005.
Sec. 101.106. CRIMINAL PENALTY. (a) A person, including an
insurer, who intentionally, knowingly, or recklessly violates
Section 101.102 commits an offense.
(b) An offense under this section is a felony of the third
degree.
(c) It is a defense to prosecution under this section that
Section 101.051 or 101.052, as applicable, by its terms does not
apply to the person charged.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2005, 79th Leg., Ch.
819, Sec. 1, eff. June 17, 2005.
SUBCHAPTER D. CEASE AND DESIST ORDERS
Sec. 101.151. POWERS OF COMMISSIONER; NOTICE OF HEARING. (a)
The commissioner may set a hearing on whether to issue a cease
and desist order under Section 101.153 if the commissioner has
reason to believe that:
(1) an insurer or person has violated or is threatening to
violate this chapter or a rule adopted under this chapter; or
(2) an insurer or person acting in violation of this chapter has
engaged in or is threatening to engage in an unfair act.
(b) The commissioner shall serve on the insurer or person a
statement of charges and a notice of hearing in the form provided
by Section 2001.052, Government Code, and applicable rules of the
commissioner.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 25, eff.
June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.009, eff.
Sept. 1, 2001.
Sec. 101.152. HEARING. (a) Except as agreed by the parties
with prior written approval of the commissioner, a hearing under
this subchapter must be held not earlier than the fifth day or
later than the 30th day after the date of service of the
statement and notice required under Section 101.151.
(b) The hearing shall be conducted in the manner provided for a
contested case under Chapter 2001, Government Code, and the
commissioner's rules.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
Sec. 101.153. CEASE AND DESIST ORDER. After a hearing held
under this subchapter, the commissioner may issue against the
insurer or person charged with a violation an order that requires
that the insurer or person immediately cease and desist from the
violation.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 26, eff.
June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.010, eff.
Sept. 1, 2001.
Sec. 101.154. ENFORCEMENT; REFERRAL TO ATTORNEY GENERAL. The
commissioner may refer the matter to the attorney general for
enforcement if the commissioner has reason to believe that an
insurer or person has:
(1) violated a cease and desist order issued under this
subchapter; or
(2) failed to pay an assessed penalty.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 27, eff.
June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.011, eff.
Sept. 1, 2001.
Sec. 101.155. EFFECT OF PRIOR PROCEEDINGS. The commissioner and
department may proceed under this chapter or any other applicable
law without regard to prior proceedings.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
Sec. 101.156. RULES. The commissioner may adopt reasonable
rules necessary to implement this subchapter.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER E. INSURANCE CONTRACTS WITH UNAUTHORIZED INSURERS
Sec. 101.201. VALIDITY OF INSURANCE CONTRACTS. (a) An
insurance contract effective in this state and entered into by an
unauthorized insurer is unenforceable by the insurer. A person
who in any manner assisted directly or indirectly in the
procurement of the contract is liable to the insured for the full
amount of a claim or loss under the terms of the contract if the
unauthorized insurer fails to pay the claim or loss.
(b) This section does not apply to insurance procured by a
licensed surplus lines agent from an eligible surplus lines
insurer as defined by Chapter 981 and independently procured
contracts of insurance, as described in Section 101.053(b)(4),
that are reported and on which premium tax is paid in accordance
with Chapter 225 or 226.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 11.012,
eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1274, Sec. 16, eff.
April 1, 2005.
Sec. 101.202. ATTORNEY'S FEES. (a) In an action against an
unauthorized insurer or unauthorized person on a contract of
insurance issued or delivered in this state to a resident of this
state or to a corporation authorized to do business in this
state, the court may award to the plaintiff a reasonable
attorney's fee if:
(1) the insurer or person failed, for at least 30 days after a
demand made before the commencement of the action, to make
payment under the contract's terms; and
(2) the failure to make the payment was vexatious and without
reasonable cause.
(b) An insurer's or person's failure to defend an action
described by Subsection (a) is prima facie evidence that the
failure to make payment was vexatious and without reasonable
cause.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1419, Sec. 28, eff.
June 1, 2003; Acts 2001, 77th Leg., ch. 1420, Sec. 11.013, eff.
Sept. 1, 2001.
Sec. 101.203. INVESTIGATION AND DISCLOSURE. (a) If the
commissioner has reason to believe that insurance has been
effectuated by or for a person in this state with an unauthorized
insurer, the commissioner shall in writing order the person to:
(1) produce for examination all insurance contracts and other
documents evidencing insurance with both authorized and
unauthorized insurers; and
(2) disclose to the commissioner:
(A) the amount of insurance;
(B) the name and address of each insurer;
(C) the gross amount of premiums paid or to be paid; and
(D) the name and address of each person assisting in the
solicitation, negotiation, or effectuation of the insurance.
(b) A person who fails to comply with a written order under
Subsection (a) before the 31st day after the date of the order or
who wilfully makes a disclosure that is untrue, deceptive, or
misleading shall forfeit:
(1) $50; and
(2) an additional $50 for each day the person continues to fail
to comply after expiration of the 30-day period.
(c) This section does not apply to:
(1) a transaction in this state that:
(A) involves a policy that:
(i) is lawfully solicited, negotiated, written, and delivered
outside this state; and
(ii) covers, at the time the policy is issued, only subjects of
insurance that are not resident, located, or expressly to be
performed in this state; and
(B) takes place after the policy is issued; or
(2) surplus lines insurance procured through eligible surplus
lines insurers as defined by Section 981.002.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 2B.018, eff. April 1, 2009.
SUBCHAPTER G. REPORTING OF UNAUTHORIZED INSURANCE
Sec. 101.301. REPORTING REQUIRED. (a) A person investigating
or adjusting a loss or claim on a subject of insurance in this
state shall immediately report to the department an insurance
policy or contract that has been entered into by an insurer that
is not authorized to transact the insurance in this state.
(b) This section does not apply to:
(1) a transaction described by Section 101.053(b)(4); or
(2) surplus lines insurance procured through eligible surplus
lines insurers as defined by Section 981.002.
Added by Acts 1999, 76th Leg., ch. 101, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 2B.019, eff. April 1, 2009.
SUBCHAPTER H. CERTAIN PROCEEDINGS; BOND REQUIREMENTS
Sec. 101.351. DEFINITIONS. (a) In this subchapter, "court
proceeding" includes an action or suit.
(b) The definition of "state" assigned by Section 311. 005,
Government Code, does not apply in this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,
2003.
Sec. 101.352. APPLICABILITY. This subchapter applies only to a
court or administrative proceeding against an unauthorized person
or insurer in which the person or insurer was served under
Section 804.107.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,
2003.
Sec. 101.353. BOND REQUIREMENT FOR COURT PROCEEDING. (a)
Except as provided by Subsection (c), before an unauthorized
person or insurer may file a pleading in a court proceeding to
which this subchapter applies, the person or insurer must deposit
cash or securities or file a bond with good and sufficient
sureties approved by the court in an amount determined by the
court as sufficient to pay any final judgment that may be
rendered in the proceeding.
(b) An unauthorized person or insurer must file the deposit
required by this section with the clerk of the court in which the
proceeding is pending.
(c) The court may issue an order waiving the deposit or bond
required by this section if the unauthorized person or insurer
demonstrates to the court's satisfaction that the person or
insurer maintains sufficient available funds or securities in a
state in the United States, in trust or otherwise, to satisfy any
final judgment that may be rendered in the proceeding.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,
2003.
Sec. 101.354. BOND REQUIREMENT FOR ADMINISTRATIVE PROCEEDING.
(a) Except as provided by Subsection (c), before an unauthorized
person or insurer may file a pleading in an administrative
proceeding of the department to which this subchapter applies,
the person or insurer must, if required by statute, deposit cash
or securities or file a bond with good and sufficient sureties
approved by the commissioner in an amount determined by the
commissioner as sufficient to pay any final order that may be
entered in the proceeding.
(b) An unauthorized person or insurer must file the deposit
required by this section with the chief clerk of the department.
(c) The commissioner may issue an order waiving the deposit or
bond required by this section if the unauthorized person or
insurer demonstrates to the commissioner's satisfaction that the
person or insurer maintains sufficient available funds or
securities in a state in the United States, in trust or
otherwise, to satisfy any final order that may be entered in the
proceeding.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,
2003.
Sec. 101.355. POSTPONEMENT. A court or the commissioner may
order any postponement necessary to afford an unauthorized person
or insurer a reasonable opportunity to:
(1) comply with Section 101.353 or 101.354, as appropriate; and
(2) defend that court or administrative proceeding.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,
2003.
Sec. 101.356. MOTION TO QUASH. Sections 101.353 and 101.354 do
not prevent an unauthorized person or insurer from filing a
motion to quash a writ or to set aside service made under Section
804.107 on the ground that the person or insurer has not engaged
in the business of insurance as described by Section 101.051.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 29, eff. June 1,
2003.